Is the president`s order to Evict Foreign small scale traders a Good Idea?

 

By Imani Media

President William Ruto’s directive targeting foreign nationals operating small-scale businesses in Kenya has ignited a heated national debate over jobs, competition, immigration and the rights of foreign investors.

The directive, announced on September 2 during a meeting with Micro, Small and Medium Enterprises (MSMEs) at State House in Nairobi, calls for action against foreign nationals engaged in activities such as hawking and small-scale retail. The President argued that Kenya needs to protect its citizens from unfair competition and that foreign investment should create jobs and expand production rather than compete with Kenyans in businesses requiring relatively little capital.

The directive comes at a time when many Kenyan traders are already facing rising operating costs and difficult trading conditions. Recent protests by traders over changes to import duty have highlighted the pressure facing small businesses, particularly those dependent on imported goods.

Why Kenyan Traders Are Welcoming the Move

For many Kenyan traders, the President’s announcement addresses a concern that has been growing for some time.

Small-scale businesses such as kiosks, hawking, food stalls, small retail shops and informal trading provide a livelihood for millions of Kenyans. For young people struggling to find formal employment, starting a small business is often one of the few available ways to earn an income.

Local traders therefore argue that they should not have to compete directly with foreign nationals in businesses that require relatively little capital and are traditionally accessible to ordinary Kenyan entrepreneurs.

The President’s argument has resonated with traders who believe that foreign investment should contribute to Kenya’s economy by creating employment, expanding manufacturing, transferring skills and opening new markets.

There is a legitimate policy question here: How much space should be given to foreign nationals in Kenya’s informal and small-scale economy when millions of citizens are themselves struggling to find work?

Protecting opportunities for Kenyan entrepreneurs is a responsibility that cannot simply be ignored.

But the Debate Needs More Nuance

At the same time, the issue should not be reduced to a simple contest between “Kenyans” and “foreigners.”

Not every foreign national operating a business in Kenya is doing so illegally.

Kenya’s immigration framework provides for foreign nationals to engage in specific trade and business activities where they meet the required conditions. For example, the Directorate of Immigration Services provides a Class G permit for foreigners intending to engage in specific trade, business, consultancy or professional activities, subject to requirements including the necessary licences, documentation and proof of investment capital.

This distinction is critical.

A foreign trader who has the necessary immigration status, business licences and other approvals should not automatically be treated in the same way as someone operating without a work permit or licence.

Indeed, Foreign Affairs Principal Secretary Korir Sing’oei clarified on September 6 that reports suggesting Kenya was closing the door on all foreign small-scale traders had taken the President’s remarks out of context. He said foreign traders and employees of all nationalities who have the required documentation, including work permits and licences, remain legally protected to operate in Kenya.

That clarification is important as enforcement begins.

The Law Should Be the Starting Point

The government’s strongest approach would therefore be to enforce existing laws fairly and transparently.

Foreign nationals who are operating businesses without the required permits, licences or immigration status should face the appropriate legal consequences.

But those who are legally registered and operating within the law should be given due process and fair treatment.

Kenya’s immigration regulations are clear that foreign nationals cannot simply enter the country as visitors and engage in employment or income-generating activities without the appropriate permission. The law provides specific categories of work and business permits for those who qualify.

This means the debate should be about legal compliance, economic policy and fair competition — not nationality alone.

That distinction will also be important in preventing legitimate businesses and innocent workers from being caught up in a broad enforcement exercise.

Protecting Kenyan Traders Requires More Than Removing Competition

There is another question that deserves attention.

Even if every foreign trader operating in small-scale businesses were removed tomorrow, Kenyan entrepreneurs would still face many of the challenges that have made doing business difficult.

Small traders continue to struggle with access to affordable capital, expensive premises, taxation, licensing costs, limited market facilities, unreliable infrastructure and competition from larger businesses.

If the government genuinely wants to strengthen Kenyan entrepreneurship, it must address these structural challenges.

Affordable financing should be made more accessible to young entrepreneurs. Market facilities should be improved. Licensing processes should be simplified. Unnecessary business costs should be reduced, and government programmes supporting MSMEs should reach the traders who need them most.

Most importantly, young Kenyans need an economy in which starting a legitimate small business can lead to growth rather than simply becoming a means of survival.

The Risk of Going Too Far

The government must also be careful about how the directive is implemented.

Kenya is a regional economic hub, and Nairobi in particular attracts traders, investors, workers and businesses from across Africa and beyond. The country benefits from legitimate foreign investment, trade and regional economic integration.

A crackdown that is perceived as targeting people simply because they are foreigners could damage Kenya’s reputation as an investment destination and create unnecessary diplomatic tensions.

There are already concerns about the treatment of foreign nationals following reports of Burundians seeking assistance to leave Kenya amid uncertainty surrounding the crackdown.

The government must therefore send a clear message: Kenya welcomes legitimate investment, but everyone doing business in the country must obey Kenyan law.

That principle is stronger, fairer and easier to defend than a blanket approach based solely on nationality.

A Fair Chance for Kenyan Entrepreneurs

President Ruto’s directive has brought an important issue into the national spotlight.

Kenyan traders deserve protection from illegal competition. Young Kenyans deserve opportunities to build businesses and earn a living. The country’s informal economy deserves policies that make it easier, not harder, for citizens to succeed.

But protecting Kenyan entrepreneurs should not mean abandoning the principles of fairness, due process and the rule of law.

The government should identify exactly which businesses are legally reserved for Kenyan citizens, clearly explain the requirements for foreign nationals, and give enforcement agencies clear guidelines to prevent arbitrary action.

Those operating illegally should be dealt with according to the law. Those operating legally should be allowed to continue, subject to the same rules and obligations that apply to everyone else.

Ultimately, the goal should not be to target people because they are foreigners.

The goal should be to create a business environment where Kenyan citizens have a fair opportunity to succeed, foreign investors contribute meaningfully to the economy, and everyone — regardless of nationality — respects the laws of Kenya.

That is the balance Kenya needs: protect local opportunity without sacrificing justice, fairness and the rule of law.

Story By Nathan Mburu